Enterprise Inns gets tenders for £298.12 million of 6½% bonds due 2018

By Susanna Moon

Chicago, Oct. 31 – Enterprise Inns plc said investors had tendered £298,124,000 of its £350,479,000 outstanding principal amount of 6½% secured bonds due 2018 in the offer that ended at 11 a.m. ET on Oct. 28.

Enterprise Inns plc plans to accept for purchase £250 million of the 6½% bonds but will announce the final results later with details of any pro rata scaling, according to a company update.

Settlement has been set for Nov. 4.

The company began tendering for up to £250 million of the bonds on Oct. 24 at a cash purchase price of 111% of par plus accrued interest.

The tender is part of the company's “proactive capital structure management,” and Enterprise Inns is making the offer “to efficiently manage the refinancing of the bonds and lengthen the offeror’s ongoing debt maturity profile,” according to a previous company announcement.

The company also will refinance its revolving facilities with up to £120 million of new revolving loans with an extended maturity until August 2020.

Enterprise also plans to price sterling-denominated fixed-rate secured bonds due 2022 with a coupon of at least 6 3/8% by Oct. 31 but will only issue the new bonds if investors including bondholders with a new issue allocation agree to subscribe for at least £150 million, the previous release noted.

A bondholder who subscribes for new bonds in addition to tendering bonds for purchase will be given priority in the allocation of the new bonds, the company said.

The minimum denomination of the new bonds is £100,000, and bondholders must tender at least £100,000 of bonds in the offer in order to receive a new issue allocation, the company added.

The company said it had gotten feedback from holders of about 50% of bondholders and decided to proceed with the offer “based on the feedback.”

Tender instructions must be submitted for a principal amount of at least £1,000 and in integral multiples of £1,000 after that, except in the case of new issue allocations.

The tender is contingent on the issue of new bonds.

BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com) and Lloyds Bank plc (+44 20 7158 1721 or liability.management@lloydsbanking.com) are the dealer managers. Deutsche Bank AG, London Branch (+44 20 7547 5000 or xchange.offer@db.com) is the tender agent.

Enterprise Inns issued £600 million of the 6½% secured bonds due 2018 with £250 million issued on March 6 and another £350 million on Oct. 28, which was consolidated to form a single series with the original issue.

Enterprise Inns is a leased and tenanted pub company based in Solihull, England.

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